Capital gains and losses

[Manon]

Hoping someone can help ! We have sold substantial amounts of shares and made an overall loss which needs to go on the tax form this year. I think we just have to enter the total gain and the total loss but how do we carry forward the excess loss for next year ? Do we have to even declare anything for this year as all profits were wiped out ?

Also, I hold some shares in an ISA and the dividends are paid gross. However, they are 'acceptable ' shares so I should get the 40%  allowance against them but the boxes only seem to allow for the net dividends to be entered  - it would be lovely to have some idea of the solution before I see the tax people next week.

Any advice gratefully received !

[parsnips]

[quote user="Manon"]

Hoping someone can help ! We have sold substantial amounts of shares and made an overall loss which needs to go on the tax form this year. I think we just have to enter the total gain and the total loss but how do we carry forward the excess loss for next year ? Do we have to even declare anything for this year as all profits were wiped out ?

Also, I hold some shares in an ISA and the dividends are paid gross. However, they are 'acceptable ' shares so I should get the 40%  allowance against them but the boxes only seem to allow for the net dividends to be entered  - it would be lovely to have some idea of the solution before I see the tax people next week.

Any advice gratefully received !

[/quote]

Hi,

     If you sold and calculated your gains/losses yourself (which I assume you did) , you should complete form 2074 showing the calculation and transfer to  2042 page 3 section 3,gain 3VG or loss 3VH ;  losses for previous years are carried forward on form 2041SP ,or on a sheet of paper; you don't need to send copies of contracts etc. but have them available if requested by the tax office.

      Your ISA shares dividends  can be declared like any others at 2047 sec A, in your case the gross is the net to you, (don't forget to calculate the  17.7% tax credit if they are UK shares), and you will need 2042C to enter that credit at box TA .

[Manon]

Thank you so much Parsnips.

[Grecian]

Hello parsnips

Certainly not doubting your word regarding submitting a 2074 form to show the workings for any capital gain/loss on share dealings. Up to now I have submitted 4 French tax returns all of which I paid an account to produce, and he never provided me with a 2074 form to submit, and to date I have not submitted a 2074 form to the tax office, just filled in the profit or loss box on the 2042. The authorities have accepted all my returns and have never asked for a 2074 form to be submitted.

This year I am filling out my own tax form, and not using an accountant, if I hadn't read this thread I would have been totally oblivious that the 2074 even existed, so now you have got me thinking as to whether I should include one this year, or just carry on as I have been doing. Sacré bleu!

Also I have never submitted a 2041SP (sounds like I should have used a different accountant!) to show any losses. The first year I never told my accountant that I had made a loss, as I did not know the loss had to be reported, so each year since my accountant carried forward the loss reporting it on a separate sheet of paper, and has taken any gains off that loss, and not declared them on the 2042. Although last year I made a loss and he declared the loss on the 2042, and again the authorities accepted it.

I really have to show my ignorance now, I see this year the tax credit on UK shares is 17.7%, whereas last year it was only 11.2%, does this mean an increase of 6.5% in the amount of tax that will have to be paid on UK share dividends? If I have read it correctly Hollande has removed the €3000 tax allowance for a couple on share dividends, so that will be putting the tax bill up as well.

[parsnips]

[quote user="Grecian"]Hello parsnips

Certainly not doubting your word regarding submitting a 2074 form to show the workings for any capital gain/loss on share dealings. Up to now I have submitted 4 French tax returns all of which I paid an account to produce, and he never provided me with a 2074 form to submit, and to date I have not submitted a 2074 form to the tax office, just filled in the profit or loss box on the 2042. The authorities have accepted all my returns and have never asked for a 2074 form to be submitted.

This year I am filling out my own tax form, and not using an accountant, if I hadn't read this thread I would have been totally oblivious that the 2074 even existed, so now you have got me thinking as to whether I should include one this year, or just carry on as I have been doing. Sacré bleu!

Also I have never submitted a 2041SP (sounds like I should have used a different accountant!) to show any losses. The first year I never told my accountant that I had made a loss, as I did not know the loss had to be reported, so each year since my accountant carried forward the loss reporting it on a separate sheet of paper, and has taken any gains off that loss, and not declared them on the 2042. Although last year I made a loss and he declared the loss on the 2042, and again the authorities accepted it.

I really have to show my ignorance now, I see this year the tax credit on UK shares is 17.7%, whereas last year it was only 11.2%, does this mean an increase of 6.5% in the amount of tax that will have to be paid on UK share dividends? If I have read it correctly Hollande has removed the €3000 tax allowance for a couple on share dividends, so that will be putting the tax bill up as well.

[/quote]

Hi,

     First the extra tax credit of 17.7% ( I'm not sure if they haven't made a misprint on the form!) but it means you gain as you get 17.7% of your net dividend subtracted from your final tax bill (transfer the figure from 2047 to 2042C box TA to get that credit)

      I also have never used those forms - I was quoting from an official guide to try to be extra correct, but sending the figures on plain paper seems to be accepted.  In fact , this year I suggest you just put your final figures at 3VG on form 2042, and have the other papers ready to send in , if asked.

[Grecian]

Thanks a lot parsnips for clarifying all the points I raised, I guess the clue to the tax credit question was in the fact the word credit was mentioned, must concentrate harder. I won't tell the authorities if you don't, that maybe it should be 11.2% instead of 17.7%.

A bit daunting this year as I mentioned this is the first year I will have completed my own tax return,. so just trying to present the forms without any errors.

Once again many thanks.